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The UAE Ministry of Finance announced amendments to some provisions of the VAT will come into effect from 01st Jan 2023 (reference: Federal Decree-Law No. 8 of 2017 – Issued 23 Aug 2017 (Effective from 1 Jan 2018) Federal Decree-Law No. 18 of 2022.
FTA Major Amendments
- No voluntary disclosure may be submitted after the expiration of 5 years from the end of the relevant Tax Period.
- In the case of Tax Evasion, the Authority may conduct a Tax Audit or issue a Tax Assessment within 15 years from the end of the Tax Period in which the Tax Evasion occurred.
- The Authority may not conduct a Tax Audit or issue a Tax Assessment to the Taxable Person after the expiration of 5 years from the end of the relevant Tax Period.
- In case of Tax Registration failure, the Authority may conduct a Tax Audit or issue a Tax Assessment within 15 years from the date on which the Taxable Person should have registered for Tax.
- The Authority may conduct a Tax Audit or issue a Tax Assessment to the Taxable Person after 5 years from the end of the relevant Tax Period if he has been notified of the commencement of such Tax Audit’s procedures before the expiration of the 5-year period, provided that the Tax Audit is completed or the Tax Assessment is issued, as the case may be, within 4 years from the date of notification of the Tax Audit.
- The Authority may conduct a Tax Audit or issue a Tax Assessment after the expiration of 5 years from the end of the relevant Tax Period if such Tax Audit or Tax Assessment issuance relates to a Voluntary Disclosure submitted in the fifth year from the end of the Tax Period, provided that the Tax Audit is completed or the Tax Assessment is issued, as the case may be, within one year from the date of submission of the Voluntary Disclosure.
- The Minister issues a Decision to amend the period specified for the completion of the Tax Audit or the issuance of the Tax Assessment.
- Registered individuals who make taxable supplies will be allowed to apply for an exception from VAT registration if all their supplies are zero-rated.
- FTA may forcibly De-Register registered individuals in specific cases if deemed necessary.
- Provisions that set a 14-day period for the issuance of a tax credit note to settle output.
- The decree law also included amendments to certain provisions to clarify and confirm the intended meaning of the text, to rephrase, and to improve the legislative sequence of legal provisions.
“SINGIRI & CO. Provides VAT Registration, Refund, Accounting Services etc
Resources Links: FTA Amended VAT Law PDF
Read More: UAE VAT Deregistration Process
